What is Bitcoin, Ethereum, and Litecoin?

Bitcoin

Bitcoin (BTC) is a new kind of digital currency-with cryptographic keys-that is decentralized to a network of computers used by users and miners around the world and is not controlled by a single organization or government. It is the first digital cryptocurrency that has gained the public’s attention and is accepted by a growing number of merchants. Like other currencies, users can use the digital currency to buy goods and services online as well as in some physical stores that accept it as a form of payment. Currency traders can also trade Bitcoins in Bitcoin exchanges.

Rather than being manipulated by a single body, bitcoin is a decentralised peer-to-peer currency, meaning that it lives on the computer of everyone that works with it. (The same as the internet itself.) Given that it’s decentralised, no one can corrupt with the marketplace by releasing more bitcoins into circulation and there is no wall-street banker lining one’s pockets by standing in the center of each order.

The perks of bitcoin are that transactions happen almost instantly and don’t require a transaction fee-unless the person starting the transaction decides to pay one. You see, since nobody manipulates the bitcoin network, there are computers around the planet who help confirm each transaction that happens– this process is called “mining.”.

The way bitcoin deals operate is very basic, everyone has a bitcoin wallet that they utilize to send and obtain funds. This wallet is a simple string of letters and numbers, helping make that wallet fully confidential unless the person chooses to link themselves with it. The private essence of bitcoin deals has caused it being used for a variety illicit activities.

While prohibited purchases may happen, there are thousands of establishments, programs and economies all over the planet that recognize bitcoin. Bitcoin was initially designed by Satoshi Nakamoto in 2008 and the first bitcoin transaction happened in 2009.

What are Bitcoin’s characteristics?

• As mentioned earlier, it is decentralized. It is not owned by any specific company or bank. Every software that mines the Bitcoins make up a network, and they work together. The theory was, and it worked, that if one network goes down, the money still flows. • It’s easy to set up. You can set up a Bitcoin account in seconds, unlike the big banks. • It’s anonymous, at least the part that your Bitcoin addresses are not linked to any sort of personal information. • It’s completely transparent, all of the transactions using Bitcoins are shown on a large chart, known as the blockchain, but nobody knows it’s you as no names are connected to it. • Transaction fees are minuscule, and compared to a bank’s fees, the rare and small fees Bitcoin charges are close to nothing. It’s fast, very fast. Anywhere you send money too, it generally will arrive in minutes after processing.g. It’s non-repudiable, meaning once you send your Bitcoins away, they’re gone forever.

Ethereum

Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. It provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts using an international network of public nodes. Ethereum also provides a cryptocurrency token called “ether”, which can be transferred between accounts and used to compensate participant nodes for computations performed. “Gas”, an internal transaction pricing mechanism, is used to mitigate spam and allocate resources on the network.

In many ways, Ethereum is similar to Bitcoin. It’s a public, peer-to-peer network or blockchain with its own digital currency called Ether. Ethereum was created by Vitalik Buterin in 2014 and the purpose of Ethereum is to be a platform on which smart contracts can be built and run. Put very simply, Ethereum is intended to be a world computer. Where Bitcoin stores a list of balances and transactions on its blockchain, the Ethereum blockchain is designed to store different types of data. This data can be accessed and used by computer programs running on the Ethereum blockchain. These programs are called decentralized apps, or dapps.

Developers around the world can build and run decentralized applications on the Ethereum blockchain. The purpose of these is to improve the industries of finance, personal information storage, governance and more by using the transparent nature of a blockchain.

Litecoin

Litecoin is a decentralized online currency. It can be used to purchase internet services, such as website development or goods, such as jewellery or other related accessories. The great thing about Litecoin is that it provides merchants with a safe and easy way to accept money, as there are no fees when sending or receiving funds. You will also find that all payments are recorded via an online system, otherwise known as the blockchain. This enables the payment receiver to immediately verify the payment and the user, without having to research it all by hand.

Litecoin uses software which allows you to send payments, much like sending an email. It is worth noting that there will only ever be 84 million litecoins, so you don’t need to worry about inflation affecting the overall value of your currency. Many people make exchanges using litecoins, with millions of trades happening every day. These exchanges are often used to trade Euros, dollars and more into litecoins, so the possibilities really are endless. This also enables users to protect their financial investments by trading their physical currency into litecoins, so exchanges can happen without worry of the new currency depreciating in value. Whatever you need, litecoins can be a great way to make online purchases, not to mention that they can also help you protect your own finances by protecting you from inflation and other external influences that might affect the value.

This currency works much like standard world currencies. Traders and investors have realized the great potential this currency has to offer, and it is heavily traded by beginning and seasoned investors alike. The best way to get the most out of Litecoin trades is to utilize the services of a Litecoin broker. There are numerous Litecoin brokers available that have excellent reputations for providing their clients with superb service. These brokers will be able to help traders make sound decisions about their investments. When you hire a good Litecoin broker, they will have numerous tools and resources available to ensure that your trades go smoothly. Perhaps the most used tool by these brokers is the Litecoin news widget. This widget can be fully customized to meet your specific needs. It will give continual updates on cryptocurrency news and other relevant information, so that you will be privy to the latest news developments as they are released on the wires.

You can get Litecoins as well as Ethereum coins and Bitcoins by purchasing from Coinbase. When you sign-up you will get $10 in free Bitcoin when you spend over a $100 dollars.

Our Sponsors

About

New Computer Inquiry was created to provide great reviews and tips that are computer or technology related. We value providing quality information that people can learn and benefit from.

Our staff are all computer experts with professional experience when it comes to Mac and PC based computers, as well as smart phones and video game consoles. Thank you for visiting our website and we look forward to serving you the best content!